Am I crazy putting 50% down on a 100k condo? The seller asked for 111k and she took 101k with new heater and electric, condo built in 78, 1400sqft, excellent schools, and $150 maintenance fee.
2007-11-14 09:01:11 · 7 answers · asked by joydid8 1 in Business & Finance ➔ Renting & Real Estate
The rule of thumb is to eliminate high interest debt first. Then figure out where you would get a better return on you cash, by spending it on a higher down payment, thereby saving interest charges - money that stays in your pocket, or making a minimum down payment and using the cash left over to invest at a higher return than what the interest costs.
what you have to count is where you come out ahead after a predetermined length of time.
2007-11-14 11:29:12 · answer #1 · answered by adam k 3 · 0⤊ 0⤋
Crazy I don't think so... Only thing your not getting is the interest rate you would get if you had that money in a savings account or CD or somewhere else.. If you have the money and you have a good savings why not.. I invest in lost of real estate and actually use Cash for all my properties then if I ever have to I can sell the property FAST....
2007-11-14 17:05:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You probably got a nice low payment, but you putting all your eggs in one basket. I'd put down 20%, and split the rest between something that earns me some interest and a savings account for things I need that don't fall under the category everyday items.
2007-11-14 17:08:47 · answer #3 · answered by Debdeb 7 · 1⤊ 1⤋
No, that's a good thing. So long as you don't need the money anytime soon. And you don't have any other debts.
1st home mortgages are about the cheapest money you can get. So pay off all other high debts, like credit cards first, then put your excess money into your home.
2007-11-14 17:10:44 · answer #4 · answered by mstrobert 5 · 1⤊ 1⤋
The more you put down the less you will have to borrow, the less you borrow, the less interest you will have to pay. You are not crazy, you are smart.
2007-11-14 17:07:42 · answer #5 · answered by Anonymous · 1⤊ 0⤋
with the home values declining...you dont want to throw away money!
dont put more than 20% as a down payment.
if your loan amount is less than 100k most lenderrs will give price hits for it.
80k and 60k.....you will definitely have a higher rate if you go that low.
2007-11-14 17:06:41 · answer #6 · answered by Anonymous · 0⤊ 3⤋
no your being smart...
2007-11-14 18:05:29 · answer #7 · answered by starglowshady 6 · 0⤊ 0⤋